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Name, age: Michelle, 39
Annual income: $143,000
Debt: $232,000 in mortgage
Savings: $4,500 in savings account, $60,000 in tax-free savings account (TFSA), $135,000 in registered retirement savings plan (RRSP)
What she does: Director in health care
Where she lives: Kamloops, B.C.
Top financial concern: “I would like a house with one more bedroom and better outdoor space but I don’t want to be house poor.”
Michelle lives alone in a two-bedroom home she owns in British Columbia, and was recently promoted to a director-level position at a health care organization.
At 39, she’s doing well financially and careerwise compared to many people her age and says it can give her imposter syndrome.
“Sometimes I wonder, ‘How the hell did I pull this off?’” Michelle says. She started her career at a community health care not-for-profit organization in Ontario before climbing the ladder and moving out West.
“I didn’t want to live in a city with a ton of traffic and commuting issues. Where I was in the GTA, that’s all it had to offer.”
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She is thankful for her high income – above $140,000 – but says she works hard for it.
“Being in health care is really hard,” she adds. “It can be really stressful and there’s a lot of pressure to deliver.”
Michelle has changed jobs every three years or so, something she says has fuelled her rapid advancement. She says the stress of being a leader in such a vital but often “severely” underfunded sector makes it hard to imagine staying in the industry until she retires. Her current job has a prized defined-benefit pension, but she only gets the full amount if she stays to age 65.
“Another 26 years doesn’t seem doable,” she says.
Living in B.C. has given Michelle easy access to an active lifestyle, which is where much of her discretionary income goes. She enjoys many outdoor sports and activities and also does CrossFit, all of which she describes as an investment in her health.
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Michelle describes herself as financially conservative, saying that being single means she has to make good decisions. “If I screw up my job, I don’t have another person to fall back on.”
She wants a larger house – she uses her second bedroom at her current home as her office, which can be challenging when she has guests.
Still, she’s not sure how to decide whether to keep plugging away at her existing mortgage, or level up to the house she really wants. “It is the biggest thing holding me back.”
Her typical monthly expenses:
Investment and savings: $1,200
$200 to savings account.
$600 to TFSA. “$50,000 in managed portfolio, $10,000 in stocks.”
$400 to RRSP. “$116,000 in a managed RRSP, $19,000 in a (locked-in retirement account).”
Servicing debt: $1,898
$1,898 to mortgage. “I have increased my monthly payments multiple times to help pay off the principal faster.”
Household and transportation: $1,280
$240 on condo fees. “Water cost is included.”
$100 on home insurance
$217 to property tax
$80 to electricity
$90 to gasoline
$100 on car insurance
$83 on car maintenance
$85 on cellphone
$85 on internet
$200 on house cleaning. “$25 an hour, four hours, twice monthly.”
Food and drink: $1,065
$900 on groceries. “80 per cent purchased at Costco, 20 per cent at discounted grocery store.”
$25 at coffee shops
$100 at restaurants. “Typically go out twice a month.”
$40 on alcohol
Miscellaneous: $3,847
$1,512 to income tax
$1,020 to pension. “Defined benefit pension plan.”
$75 on entertainment and going out
$35 on streaming services. “Netflix, Prime, Crave, Disney bundle via cellphone provider.”
$15 on music streaming
$167 on clothing. “Clothes, shoes, activity gear.”
$325 on sports. “Ski and CrossFit pass.”
$30 on yoga classes
$42 on hobbies. “Reading and biking.”
$50 on haircuts
$25 on cosmetics
$75 on personal services
$21 on dental appointments. “I have good dental coverage through work benefits.”
$333 on vacations
$83 on donations
$29 on long-term disability insurance
$10 on credit-card fee
Some details may be changed to protect the privacy of the person profiled. We want to thank them for sharing their story.
Participate in the Paycheque Project
Welcome to Paycheque Project, a regular series in The Globe and Mail that looks at how much young Canadians are earning – and where that money is going. We’d like to hear from young adults from a diverse range of backgrounds, geographic locations, and earnings ranges.
If you’re a millennial or Gen Z and would like to participate, fill out the form below or send an email to Roma Luciw at rluciw@globeandmail.com. Please include your name, age, where you live, occupation, your biggest financial concern and your email. And remember, Paycheque Project is a judgement-free zone.